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Migrants and host countries incur direct costs in making and processing applications, finding housing, etc. The costs to a migrant in the year of migration are estimated to be in the range of $7,000 to $21,000, and the costs to the host country (including social welfare benefits) are in the same range. After the first year, we assume migrants to be fiscally neutral for their host country.
Increasing the rate of migration sufficient to boost the labor force in high-income countries by a total of three percent over a 25-year period would lead to global gains at the end of the period of $674 billion annually, with all but $50 billion accruing to current citizens of developing countries, either as migrants or via their remittances.
Depending on the economic assumptions used, the benefits are estimated to be around 224 times higher than the costs. Citizens of today's developing countries (particularly the migrants) would be the major beneficiaries.
9. Sanitation and Water
At the turn of the 21st century, about 1.1 billion people lacked improved water supplies and more than 2.7 billion had no sanitation service.
The Millennium Development Goals includes the goal of halving the proportion of people without access to water or sanitation by 2015. This may be difficult to achieve, partly because the need to ensure the benefits of improved access are large enough to cover the costs of those who bear them is often overlooked.
The incremental benefit of improved water supply may simply not cover the large cost of providing it, since by definition everyone has some access to water in order to live, and the willingness to pay for an improvement may be low.
Rather than focusing on expensive piped network solutions, non-network interventions could prove helpful as intermediate solutions.
Option One: Rural water supply
Where deep groundwater is the best available water source, a borehole and communal hand pump is usually considered a low-cost and appropriate technology.
Following the failure of many rural water supply projects, a new and more successful planning model emerged in the 1990s. This is based on "demand-driven" community management where households are involved in decision-making and pay for all of the costs of providing and maintaining the service plus at least some of the capital cost.
The capital costs are $6,500 on average, and program overhead is $3,500; a total of typically $10,000. Adding the necessary costs for labor and maintenance, the total annual cost is $1,630, or about $135 per month. We assume 60 households will share the borehole, which gives a monthly cost of $2.26 per household.
Benefits come from time savings for water collection, increased use of higher quality supply and the monetary value of health improvements.
These benefits together add up to $7.19 for a typical rural household in a month, compared to a cost of $2.26, implying a benefit-cost ratio of about 3.2.
Option Two: Biosand filters